Republic of Kenya Sept 2013, Nairobi, Kenya Ministry of Energy and Petroleum ENERGY DAY
CONTENTS
MoEP Mission and Vision 1
Energy Sector Structure 2
Power Cycle: Generation to Distribution 3
40-Month 5,000+MW Initiative 4
Investment Opportunities in the Sector 5
MISSION & VISION
… to facilitate provision
of clean, sustainable, affordable, reliable and secure energy for national development while protecting the environment …
Mission
… affordable
quality energy for
all Kenyans …
Vision
1
2. Developing Least Cost Power Development Master Plan
3. Undertaking Geological, Geophysical and Geochemical mapping
for geo-energy minerals
4. Promoting Development of Renewable Energy, Energy Efficiency &
Conservation
5. Exploring, Appraising and Developing Petroleum Resources
MINISTRY KEY FUNCTIONS 1
1. Setting the Energy Sector Policy, Vision and Strategic Direction
Source: KenGen;
ENERGY SECTOR STRUCTURE 2.
Ministry of Energy and
Petroleum (MoEP)
(setting policy)
Energy Regulatory
Commission(ERC) (regulating energy sector)
KPC (Transport)
KPRL (Refinery)
NOCK (Marketer)
Private
Marketers
PETROLEUM
KETRACO – Kenya Electricity Transmission Company Ltd REA – Rural Electrification Authoirity KPLC – Kenya Power & Lighting Company Ltd GDC – Geothermal Development Company Ltd IPPs – Independent Power Producers KPC – Kenya Pipeline Company Ltd KPRL – Kenya Petroleum Refinery Ltd NOCK – National Oil Company of Kenya KNEB – Kenya Nuclear Electricity Board
GDC (Geo-
Resource
Assess-
ment)
IPPs (Power
Gene-
ration)
KenGen (Power
Gene-
ration)
KE-
TRACO ( New Trans-
mission)
REA
(Rural
Elec-
trification)
Kenya
Power (Dx &
Existing Tx
Lines
Generation Transmission
& Distribution
Energy Tribunal (ET) (arbitrating energy sector)
ELECTRICITY
KNEB (Nuclear)
Source: KenGen; MoEP
DEMAND DRIVERS BY 2018 2.
2,000
4,196 Total
Iron & Steel
Smelting Industry
Standard Gauge and Light Rail
ICT Parks
1,171
675
MW
Lapsset 350
• Economic activities in
counties
• Mining and Process
industries
• Irrigation
• Electrification of rail;
• Powering resort cities
and new economic
zones.
POWER CYCLE: EFFECTIVE GENERATION MIX 2
1,664 0%
622
(37%) Thermal
Wind (5.1 MW)
2013
241
(14%) Geothermal Co-Gen (26MW)
2%
770
(46%) Hydro
MW
• Inadequate generation capacity
due to insufficient investment.
• Overdependence on hydro -
thermal plants account for ~40%
with unit cost Uscts 26 – 36.
• Weak power evacuation and
distribution infrastructure.
Challenges
POWER CYCLE: PEAK DEMAND (MW) 1
2013
30% Reserve Margin
Suppressed
Current Peak 1,357
343
536
2,236
1700 MW
• Current installed capacity
≈ 1,700MW required
2,236MW
• Shortfall; ≈536 MW,
after providing for a 30%
reserve margin
…due to
transmission and
distribution system
weaknesses
… true
peak …
INITIATIVES TO REDUCE SUPPRESSED DEMAND 3.
• 220kV ring around
Nairobi
• 1,114km 132 kV lines by
2014 (~cost US$ 250m)
• 1,760km 220/400kV
lines by 2015 (~cost
Kshs US$738m)
• 2nd National Control
Centre
• Underground Cables in
Urban Areas
• Aerial(insulated)
Bundled Conductors
(ABC) in rural & peri-
urban areas
• Additional substations
across the country
• Scaling up of
connectivity
• Electrification of
informal
settlements with
appropriate
infrastructure
Trans., Dist. &
Substation
Component
Connectivity
Component
40-MONTH 5000+MW Strategy 3.
NEW CAPACITY ADDITIONS (MW)
TIME IN MONTHS 6 12 18 24 30 36 40 TOTAL
Hydro 24 - - - - - - 24
Thermal 87 163 - - - - - 250
Geothermal 90 176 190 50 205 150 785 1,646
Wind - - 20 60 300 250 - 630
Coal - - - - 960 - 960 1,920
LNG - - - 700 350 - - 1,050
Co-Generation - - 18 - - - - 18
Total 201 339 228 810 1,815 400 1,745
Cumulative Additions 201
540
768 1,578
3,393 3,793 5,538
61% is Renewable
Capacity
TARIFF EVOLUTION WITH THE NEW CAPACITY 3.
1664
2342
5017
6762
14.14
12.49
11.03
9.03
9
19.78
17.73
13.46
11.19 10.43
0
5
10
15
20
25
0
1000
2000
3000
4000
5000
6000
7000
8000
0 6 12 18 24 30 36 40
Tari
ff P
rogr
ess
ion
Cu
mu
lati
ve In
stal
led
Cap
acit
y
Cumulative MW
Industrial/Commercial Tariff (US$cts/kWh)
Domestic Tariff Progression (US$cts/kWh)
37% reduction
47% reduction
PROJECT DESCRIPTION DUE DATE
1.
Olkaria Wellhead
70 MW 2014 December
2.
Olkaria V
140 MW 2015 December
3.
Olkaria VI
140 MW 2016 December
GEOTHERMAL PROJECTS REQUIRING INVESTORS 3.
Total 350 MW Estimated Capex US$ 875m
PROJECT DESCRIPTION DUE DATE
1.
2.
90 MW Menengai
50 MW Menengai
2014 December
GEOTHERMAL PROJECTS REQUIRING INVESTORS
3.
4.
100 MW Menengai
100 MW Menengai
2015 December
5.
6.
100 MW Menengai
50 MW Suswa
2016 December
7.
8.
100 MW Suswa
200 MW Baringo
2016 December
2016 June
2016 June
2016 December
3.
2015 June
Total 790 MW Estimated Capex US$ 1,975m
PROJECT DESCRIPTION DUE DATE
1. 170,000 m3 Floating Storage & Regasification Unit 2015 June
LNG PROJECTS
2. Dredging; approximately 300m at Dongo Kundu 2015 June
3. 4x200MW Power Plant at Dongo Kundu 2015 June
4. Conversion 90 MW Rabai Power Plant to LNG 2015 June
5. Re-engineering 190 MW Kipevu I & III to LNG 2015 June
6. Re-engineering 70 MW Kipevu II to LNG 2015 June
3.
PROJECT DESCRIPTION DUE DATE
1. Construction of Coal Dry Cargo Handling Jetty 2015 December
COAL PROJECTS
2. 3x320 MW Power Plant at Kilifi/Lamu 2015 December
3. 3x320 MW Power Plant at Kitui/Lamu 2016 October
3.
PROJECT DESCRIPTION DUE DATE
50km, 400kV double circuit line for power
evacuation from 700 MW LNG plant 2015 Jul
TRANSMISSION PROJECTS…
2016 Dec 620km, 400kV double circuit line for
power evacuation from 960MW Kitui
Coal plant
2014 Dec 20km, 132kV for power evacuation from
90MW Menengai geothermal plant
80km, 400kV double circuit line for power
evacuation from 960MW Kilifi Coal plant. 2015 Dec
Dongo Kundu - Mariakani
Mariakani -
Kitui- Nairobi
East Line
Menengai T-
off Jinja Line
Kilifi/Lamu-
Mariakani
3.
PROJECT DESCRIPTION DUE DATE
170km, 400kV double circuit line for power
evacuation from Silali Geothermal Field 2016 Jun
TRANSMISSION PROJECTS…
2016 Oct 75km, 400kV double circuit line for power
evacuation from 960MW Kitui Coal plant
Silali-
Menengai-
Rongai
Isinya –
Nairobi East
3.
OTHER INVESTMENT OPPORTUNITIES… 3.
1. Strategic Petroleum Reserves
2. Single Buoy Mooring Facility
3. LAPPSET
OTHER INVESTMENT OPPORTUNITIES IN OIL … 3.
• 23 International Oil Companies
(IOCs) in the 44 licensed blocks.
• To date 39 wells have been drilled
• Successful Wells
1. Ngamia 1 - Oil discovered
2. Twiga 1 - Oil discovered
3. Etuko-1 - Oil discovered
4. Mbawa-1 - Natural gas
Relinquished Blocks (In Yellow -7)
Plans are underway to gazette additional seven (7) blocks that were recently relinquished. This will increase the total number of blocks to fifty three (53).
Open Blocks (In Green -2)
Blocks L25 & L26
(already gazetted).
3. OTHER INVESTMENT OPPORTUNITIES IN OIL …
Mutomo
Kitui
Mwingi
Mutitu
MUTITU
ZOMBE
VOO
ENDAU
MIA
MB
AN
I
ATHI
YAT
TA
YA
TTA
MUTHA
MUTOMO
IKU
TH
A
NZA
MB
AN
I
MUINUU
TSEIKURU
THARAKA
MIVUKONI
KATSE
NGOMENI
UKASI
MIG
WA
NI
MUTUNGONI
MATINYANI
IKANGA
KISASI
MU
LA
NG
OM
IWA
NI
KANZIKU
Kyuso
KYUSO
ENDUI
Basement rocks (Mozambiquan Belt)
Mui Basin
Wamwathi
Mutwang’ombe
Mutitu
Kabati
Yoonye
Zombe
Mui
Isekele
MathukiKarunga
4 60 2 Km
Basement rocks
Mui Basin Sediments
TAN
A R
IVE
R
GAR
ISSA
KIL
IFI
TAITA TAVETA
KWALE
MA
CH
AK
OS
MERU
EM
BU
ISIO
LO
LAMU
IND
IAN
OC
EA
N
Mombasa
SO
MA
LIA
TANZANIAINDEX 2
North
3. Coal Resources Exploration and Development
Exploration for coal in Kenya has been going on for many years
In 2010 MoEP
discovered
commercial coal
deposits in Mui
Basin of Kitui
County (180km
North-East of
Nairobi).
Endau
Mwingi
Waita
Kamuwongo
Kisa si
Katse Kyuso
Tseikuru
Usueni
Ngom eni
EnziuNguni
BLOCK D
BLOCK C
BLOCK B
BLOCK A
Kisa si
Kitui
Mui
Kabati
Migwani
Endau
Mwingi
Waita
Kamuwongo
Kisasi
Katse Kyuso
Tseikuru
Usueni
Ngomeni
EnziuNguni
BLOCK D
BLOCK C
BLOCK B
BLOCK A
Kisasi
Kitui
Mui
Kabati
Migwani
MWINGI
KITUI
LOCATION OF MUI BASIN IN MWINGI & KITUI DISTRICTS
4 4.02 0 8.0 12.0 16.0
KILOMETRES
3. Coal Resources Development (Mui Basin)
• Divided into Blocks A, B, C & D.
• Block C has at least 400 million metric
tonnes of coal.
• Blocks A, B & D have coal in the 10
out of 20 exploratory wells.
• Blocks C & D being concessioned to
Fenxi of China.
• Tender for Blocks A & B to be re-
advertised.
• 31 new blocks delineated outside the
Mui Basin soon to be tendered.
• 960MW of power from Mui coal
planned by 2016.
• Another 960MW to be developed in
Kilifi/Lamu County using imported
coal.